In Marathon Meeting, RBI Moves To Address Centre's Concerns | Read

The Reserve Bank of India (RBI)'s board met for more than nine hours in Mumbai today in the middle of an unprecedented public feud between the government and the central bank, which alleges attempts by the centre to undermine its autonomy. The RBI announced that it would inject Rs. 8,000 worth of liquidity into the system through open market operations on November 22. The central bank's move - aimed at boosting liquidity into the system by way of purchasing government securities - is in line with its earlier decision to buy bonds worth Rs. 40,000 crore in November. Concerns about a cash-crunch in shadow banks after defaults at IL&FS or Infrastructure Leasing & Financial Services - one of the country's largest infrastructure financing companies - had earlier this year sent the capital markets plunging.